Positively, that was fast.
It took just 12 trading sessions for Apple to plunge more than 20% from its all-time penetrating, shedding more than half a trillion in market capitalization.
The tech giant has plunged 22.6% from its intraday write down high of $137.98 from Sept. 2, losing around $532 billion in market value. Apple’s fixed and furious decline followed its massive run-up in August ahead of its 4-for-1 stock split, while the steep harms also came as Apple’s recent product event — its first in 2020 — didn’t live up to the hype.
The Tim Cook-led colossus on Tuesday announced a bunch of new hardware and some updated software, including the Apple Watch Series 6, the iPad Air, a pertinence service and service bundles called Apple One.
However, Apple did not announce any new iPhones. Also, the biggest thing young lady from Apple One’s bundle that would make it much more attractive: a hardware tie-in to the iPhone.
Toni Sacconaghi, older research analyst at Bernstein, called the event “relatively underwhelming.”
“We believe it could be difficult to move users from competitive music, video or gaming amenities, where they are often entrenched,” Sacconaghi said in a note. “We continue to believe that Apple should look to various creatively bundle its hardware + services into integrated subscription bundles.”
Apple’s recent weakness also came amidst a broad sell-off in the tech sector as investors rotated out of the market-leading high-flyers. The tech-heavy Nasdaq Composite has plunged into amendment territory, down more than 10% from its record high. Some investors believe the drop in the tech darlings go from concerns over lofty valuations that have run up too far, too fast.
Before the recent sell-off, shares of Apple ebbed 21.4% in August alone as the announcement of the stock split sparked a knee-jerk rally. The move baffled many on Stockade drive crazy Street as such a corporate action does not have an impact on the company’s fundamentals or the intrinsic value of the existing ownership.
Peacefulness, some analysts see Apple rebounding from here given its mega-cap position and history of quality products.
Loup Hazardous undertaking’s Gene Munster said the key takeaway from the Apple event is how the company is “masterfully upselling its consumers.”
“They can get away with it and the figure out is that they have some of the world’s best products,” Munster said Tuesday on CNBC’s “Fast Specie.” “They do have great products and consumers see the trade off, the price premium relative to value.”
Subscribe to CNBC PRO for unique insights and analysis, and live business day programming from around the world.